Posts Tagged ‘Business Planning’


Mondays with Mike: What They Told You About Sales Is Wrong!

1-26 sales trips eye contact smallWhat’s been written about sales tactics could stretch from here to the moon and back.  There are seminars, webinars, and even one-on-one coaches who promise to give you the low-down on surefire tips to close a deal.  What’s wrong with the accepted truths about sales?  Many of them are wrong!  When you look at evidence, we discover that sometimes these techniques can backfire and actually hurt your chances for making the sale.  Here are some tips to watch out for:

  1. Make eye contact.  The goal of this tactic is to create a connection between you and your prospective client.  While you do want to connect, too much eye contact is frequently interpreted as aggression and can actually make a client uncomfortable and less likely to buy what you’re selling.  Intermittent eye contact is much more comfortable and still helps you create a connection.
  2. Quote a range of prices.  Say you’re working to land a new client for your cleaning service.  You tell the client it’ll cost between $100 and $200 monthly for your services.  You think that by giving a range you can settle in the middle and satisfy both parties, but here’s the trouble:  your client hears $100, and you’re hoping for $200.  If you settle at $150, then your client feels ripped off, and you’re disappointed.  A much better strategy is to quote a specific price, preferably one with wiggle room.  If you quote $170, knowing you’re willing to negotiate downward, then when you settle at $150, your client feels like he got a bargain, and you’re precisely where you wanted to be.  A specific price with room for expected negotiation is more likely to give you a win-win outcome.
  3. Assume the sale.  In the old days, we were taught to make your pitch assuming success.  The trouble is that consumers are wise to this not-so-subtle attempt at manipulation, and engaging in it can make you seem a little sleazy.  Telegraphing your attempts to toy with clients’ emotions is a fail, in part because it makes customers feel like you think they’re suckers – easily manipulated and not very smart.  Respect your customers enough to let them make their own decisions.
  4. Give them no way out.  High pressure sales can work, at least in the short term, but it’s not a recipe for long term success.  Consider this:  there’s an entire legal niche for attorneys who specialize in handling cases for clients who have buyers remorse after being pressured into purchasing a time share.  The tactic of shutting a client in a room and holding them there until they sign has major negative ramifications.  If your customers feel like they’re in control, they’re going to walk away thrilled to have given you their business, rather than walking away feeling like they’ve been ripped off.

The best sales people are psychologists, in a way.  They understand what consumers want, and they find a way to deliver it.  Assuming the goal isn’t just a one-time sale, building business deals that treat your clients like partners will result in consumer loyalty and future sales, as well as referrals based on great experiences.  Don’t let tired truisms guide your sales pitches.  Take the time to use tactics that are proven effective.


Is Your Passion Enough to Start a Business?

1-21 passion into business smallPassion is an overused term in business. You keep hearing “do what you love,” but you need to be thinking about whether your passion is truly sufficient enough to start a successful business. To create a business you must provide a product or service people are willing to pay for. Maybe you love knitting baby booties, and want to make millions doing so. I’m sad to tell you: unless you employ about 10,000 other baby-bootie knitters, you will likely never reach that financial goal.

It’s important that you assess whether your passion has a profit center before you start that business. By making sure you can actually make money you’ll ensure that your business will be able to weather an economic crisis and other bumps in the road. You also need to be able to scale that profit center beyond what your own two hands can create.

Assess Your Passions

Start by looking at what you’re passionate about. Your list will likely include things you can quickly mark off your “possible business” list, like “watching WWE fights or The Food Network.” You simply aren’t going to be able to build a business around that!

Maybe you’re an avid bike rider who’s passionate about taking kids on long cross-country bike treks. Or you love animals and have a knack for training them. Maybe you are good at helping friend pull together a killer look or update their wardrobe. These are passions you can build a business around.

But go beyond those obvious passions, like what you enjoy doing in your spare time, and look at the abstract. You might enjoy working with small teams, or planning events. You might love closing a sale, or have an eye for home design. Some of these passions may be worth considering starting a business around, while others may simply be useful as you develop your business.

Consider Your Goals

Going back to that baby bootie example. If you’re content knitting 25 hours a week and making enough cash to take a vacation, leaving you ample time to spend with your kids, this could be a sustainable business model. You have to look at your resources (at this point, that’s just you, the knitter) and determine whether you can accomplish what you want with them.

Maybe you’ve got money squirreled away, and could hire your knitting club to triple your production of booties. Now you’re talking! You could create a virtual network of knitters (say that 5 times fast) and grow your business from there.

Passion is a great place to start in becoming your own boss, but it’s not the only factor to consider. You also need to be able to make enough money to hit your goal, while maintaining the type of lifestyle you desire. Profit is how we keep score in business, so just make sure you are honest with yourself about whether or not your business concept can actual make money.


Nextiva Tuesday Tip: Are You Ignoring Your Returning Customers?

1-20-15 customer rewards smallHave you ever had this experience: You see an ad or offer for some amazing deal for a company of which you’re a longtime customer—something big, like “50% off a year’s membership.” Wow, you want to take advantage of that! But you can’t because there’s only one catch: The offer is for new customers only. “Hmph,” you think. “What am I, chopped liver?”

Many small businesses make the mistake of ignoring their biggest source of income: recurring customers. OK, maybe not “ignoring” them completely, but giving them the short end of the stick when it comes to attention, special offers and prime treatment.

It’s natural that getting new customers should be a key part of your business strategy. After all, every company needs new business in the pipeline to survive and grow. But the bulk of your time and attention should go to your existing customers. Why? Here are just a few reasons:

  • They’re already loyal customers.
  • It costs less to keep them satisfied (and buying) than it does to replace them.
  • Keep them happy and they’ll tell friends about your business.

What can you do to provide better treatment for your returning customers? Here are some ideas:

  • Hold special sales or events just for loyal customers.
  • Offer them early access to new merchandise or services.
  • Give them the chance to lock in current prices for the coming year or when they renew.
  • Use automation tools such as a CRM system to track details about your customers so you can personalize your customer service, offers and interactions. You can even greet them appropriately when they call your business!
  • Use technology that creates a record of customer service interactions so that when recurring customers contact you with problems, you can quickly access their histories.
  • Investigate loyalty programs for small businesses. There are many affordable options that integrate with your marketing, enabling more targeted outreach to returning customers.

It’s OK to create special offers and deals for new customers only—just be sure you provide equivalent or better rewards for customers who have shown their loyalty to your business. 


7 Things Successful People Never Ever Do

happiness & freedomIn a business person’s day, there is always more tasks than hours. The key to being successful is not to do more multitasking in an effort to cram more into each day. It’s not to work harder with longer hours to get everything done. What separates very successful people from the rest of the pack is not what they do, but actually what they never ever do. For example:

  1. Never hold on to the past. Successful people don’t let the future get shaped by what happened in the past. They don’t hold a grudge. They evaluate results of their success or failure, let go of it and move on within 24 hours of any event. Successful people realize that there is more opportunity in the future than the past.
  2. Never make big decisions. They never bet the company all on one action. They prevent this by making small incremental choices. Successful people test every result and then make another small decision to get to where the business needs to go.
  3. Never focus on perfection. It costs too much to achieve and there is that constant nagging feeling of failure. They would rather be done than have the job be perfect so they can learn from the results. This doesn’t mean successful people ever do a bad job, but rather, they do 100% and then move on to the next opportunity.
  4. Never do it all themselves. Successful people know that small business is truly a team sport. They know how to leverage each opportunity using other people and outside resources to accomplish their goal. Successful people realize that this is the key to building a company that is not just about them.
  5. Never say yes to every customer request. They know what their company is good at and carefully choose the problems they solve for their customers that will show the most value. As a result, they are able to honor existing commitments. In addition, successful people do not work with every interested customer and fire the ones that don’t match their culture.
  6. Never multi-task. Successful people know that multitasking only gets more things done poorly. They focus on the tactic at hand and then move on to the next one. They know how to block out common distractions like email and social media notifications.  Successful people can intensely focus for short periods of time.
  7. Never hang out with “Negative Nellies”. Successful people don’t keep company with other folks that are constantly telling them why something can’t get done. They don’t feed the neurosis of complainers who always want to say that the sky is always failing. Instead, successful people work with a team that has a can-do attitude where anything is possible.

As a successful person, what do you never ever do?


Mondays with Mike: What You Can Learn From Hyper-Startups

1-12 business plan smallThere are time-tested procedures for starting a business – from writing elaborate business plans to generating sales projections.  While we can learn a lot from following traditional paths, there’s a host of new entrepreneurs who start their businesses in a flash – moving from idea to implementation in a matter of hours.  These hyper-startups are volatile, flexible, and sometimes unstable, but there’s a lot we can learn from them.

  1. Reach out to customers right away.  While traditional models would have you create a prototype and run alpha and beta testing with a sample of potential customers, hyper-startups rope their customers in right away.  Using crowdfunding and crowdsourcing sites, entrepreneurs can solicit startup funds, feedback, and suggestions from end users before a product is even produced.  Bonus – when you do have a product to take to market, you’ve already established a list of potential buyers.  You’re researching and marketing all at the same time!
  2. Let your best customer find you.  Now, I’m not suggesting that you won’t need to do any marketing in order to reach customers, but what is worth pointing out is that by assuming you already know who your customer is, you may be missing out on your best customer.  Keep an open mind in terms of who will be excited about your product, and even about new or unexpected uses for your product or service.  Hyper-startups know to listen to the chatter.  Don’t limit yourself by thinking you know it all.
  3. Be mobile and be ready.  As more and more business is done on iPads, smartphones, and tablets, the speed with which a savvy entrepreneur can move from idea to income has become mindboggling.  Being ready and able to work wherever and whenever inspiration strikes makes you more effective and more efficient.  Integrating social media with your startup right away lets you make changes and share news anytime, anywhere.
  4. Ride the wave – and know when to throw in the towel.  Hyper-startups can flourish in a flash and fail just as rapidly.  Keeping abreast of trends and market shifts is essential if you’re going to make hay while the sun shines.  Not only does staying up on what’s hot keep you profitable, but it can also permit you to shape trends, in addition to reacting to them.  Encourage your customers to stay connected and keep in touch about their experiences and needs.  Not only are your vocal customers key in keeping your offerings current, but they’re also your best marketers, bringing in new fans every day.
  5. Plan for success (and prepare for failure.)  So you’ve got a brilliant idea.  Are you prepared for what you’ll do if it’s a crazy success and you have more business than you can handle?  Make sure you have a plan for how to scale up production and delivery just in case you’re a big hit.  Also, have an exit strategy, a stop-loss point at which you’ll cut your losses and move on if the startup doesn’t flourish.

Hyper-startups are inherently volatile.  They depend on the changeable desires and interests of notoriously fickle consumers who seek out the new and noteworthy.  That doesn’t mean hyper-startups are all bad.  It’s possible to make a lot of money in a very short period of time, provided you’re prepared.  Even if you choose a more traditional route to starting your company, there are elements of these rapid developers you can use to make your efforts more effective, even long-term.


Breaking Bad Business Habits

1-9 breaking bad habits smallSmall business owners are among the hardest-working people in the country. They get in early and stay late, handle every business detail and bend over backwards to meet and exceed the needs of their clients and customers. On the surface, these traits are admirable. But they can also stifle the future of your company. Here are five habits to kill so that you can work smarter, instead of harder, and maximize your success.

Working Non-stop

When you turn your computer off at the end of each day, it re-starts completely fresh in the morning.  When you don’t, it starts to work sluggishly and sometimes, it even crashes.  Don’t you think that your mind needs the same break? A little R&R (and a good night’s sleep) gives your brain a chance to process the previous day’s events. And, since it’s not uncommon to go to sleep with an unsolved problem and wake up with the solution, you can sleep guilt-free, knowing that you may continue to work after you hit the sack.  Even just taking some time to exercise, watch television or engage in a hobby allows you to be your best self and in turn, that makes you better in your business.

Short-term Thinking

With cash-flow a common issue for small business owners, it’s tempting to chase every dollar. Granted, you’ll get a quick hundred bucks now if you take on a two-day special project for a client. But, those two days might be better spent going on sales calls to acquire new business or starting a large project that will realize major income, even if you won’t see it until next month.  Or perhaps you have a temporary solution to a business issue that doesn’t take into account future issues that the new solution might cause to your customers.  Don’t just think about today; be focused on your ultimate goals.

Doing Everything Yourself

Most entrepreneurs wear all hats in the early days of their businesses, but during times of growth, they have to learn to let go of the daily minutiae. At some point, you need to outsource or delegate, even if you don’t think others can handle every task as brilliantly as you do it. You definitely should continue to monitor the progress of all business operations, but let your employees, contractors and/or service providers do things in the ways that they are comfortable while you focus on the aspects of your business where you can add the most value and be best utilized.

Addressing the “Urgent” Rather than the “Important”

The squeaky wheel may get the grease, but a wheel might make no noise before falling off of the car. So, even though Customer A is yelling the loudest — or yelled most recently — Customer B (or even a new customer that you are courting) may have more important issues.

Your job is to correctly prioritize every task and stick to your decisions. If newer issues are more important than others on your to-do list, place them higher on the list. This simple method allows the most trivial issues to naturally fall to the bottom of the list (which, by the way, might help identify great tasks to delegate).

Being a “Yes Man” (or Woman)

Every business owner needs to learn how to say “no.” You can only take on so many projects at once. You can lose your reputation and clients if you have to cut so many corners that you turn out less-than-stellar products or services. Before taking on new work, remind yourself of your end goals as a business and use those goals as your litmus test. If you’re already short on time and responding to a request does not further those goals, you need to turn it down.

Let your business habits match your business cycle. The habits that served you in the early days of your business do not necessarily make sense as your company becomes more mature. Don’t be constrained by the “I’ve always done it this way” attitude. Take a little time to determine the best ways to use your time and resources to take care of your business and yourself. 


How to Do Multitasking Right

1-8 multi-tasking smallIn most cases, multitasking only accomplishes one thing: it gets more things done poorly. However, there is a way to do multitasking that can increase productivity.

When running a small business, everyone and everything demands your attention all at once. With so much to do against so many distractions, it’s amazing that anything gets accomplished well. The answer can be multitasking, but it’s important to clarify what multitasking should be and just what can never ever happen.

If you are constantly shifting back and forth between tasks or allowing interruptions to determine what gets done, you are doing multitasking wrong. This type of activity has been reported to cause as much as a 40% reduction in productivity. Not surprisingly, it also increases the incidents of mistakes and errors.

While people shouldn’t perform several tasks at once, they can manage several tasks at one time. Multitasking should be thought of as a system for being able to make quick decisions about the importance and sequence of tasks, and then proceeding to complete those focused tasks efficiently.

Here are steps for doing multitasking right:

  1. Prioritize. Make a short list of the things to be accomplished (five or less) and which needs to be accomplished first.
  2. Organize. Once tasks are prioritized, decide which tasks on the list can actually be done together. This is efficient and saves more time than starting and stopping different activities. For example, instead of calling four prospects at random times throughout the day, set aside two hours to make the four 30 minute phone calls back-to-back. Also, checking email only two to four times a day is more productive then looking at each notification.
  3. Focus. Complete the task at hand and don’t think of all the other things that need to get done. Block out all other interruptions. Everything should be on the prioritized to-do list and out of mind until the more important tasks are complete. 
  4. Finish what you start. Going back and forth between tasks wastes time because it ends up being more difficult to complete the task when you try to go back to it. Aim to finish the task, in one or two work sessions, before moving on to another one.
  5. Delegate. There is a certain point where not even operating at 100 percent efficiency can get everything done. It’s important to recognize as soon as you can’t do everything yourself. The best course of action is to delegate your tasks to employees and other outside resources.

This is what multitasking should look like. The sooner you stop doing multiple things at once and start managing multiple things at once, the better off your businesses will be and the more you will actually get done. 


Mondays with Mike: The New Marketing Trend That’s Here To Stay

1-5-15 authencitiy seal smallLimited time!  Lowest price!  Buy now!

Consumers are inundated with claims on their attention, time, and money.  We’re tired of brand impressions everywhere we turn, and we crave something different.  What works right now for consumers in our crowded marketplace? 

Authenticity.  Surprising, isn’t it?  What’s most effective is providing great value to customers who feel invested in your success.  Here’s what you need to know about making an authentic connection with your customers and transforming them into your biggest fans.

  1. Tell your story.  Customers want to support ordinary people, folks they can relate to, and it’s your job to convey your tale in a compelling way.  Hint – you may need help here … that’s what great marketing companies can help with.   Whether you tell your rags-to-riches saga, or whether you detail your unorthodox approach to success, you need to define what sets you apart from the crowd – that’s your message, your story.
  2. Use the phoenix effect.  They mythical phoenix is consumed by flames and reborn from the ashes.  We love to hear tales about someone who manages to start fresh, overcoming adversity, to make it big.  Part of telling your story should convey the unique challenges you’ve faced.
  3. Don’t start a pity party.  You don’t want customers to buy from you just because they feel sorry for you, so it’s important to cast your story – even if it includes difficulties – in a positive light.  Don’t spend too much time whining about how hard it was; focus, instead, on how far you’ve come.  Tell your customers how proud you are of your hard work and achievements.
  4. Don’t brag.  You do not want to make prospective customers envious of your success.  Take Donald Trump as an example.  We may admire some of his success, and we may even choose to adopt some of his business practices, but I don’t know anyone who’s dying to fork over their hard-earned money simply to enrich The Donald.  You don’t want to flaunt your success.  You want to earn loyal supporters.
  5. Have an enemy.  Whether it’s the huge, soulless corporation that you’re struggling to compete with, or whether it’s rigid, outdated practices you’re revolutionizing, people love to root for the underdog.  As part of your narrative, you need to situate your business in a context – give your clients a reason to invest in your success.
  6. Be part of your community.  If you could choose to spend your money with a big company who spirits the profits to somewhere on the other side of the world or with a small company who reinvests in the local community, which would it be?  No contest, right.  Make sure you share the good work you’re doing to make your town or neighborhood a better place to live and work.

Authentic marketing is a refreshing, revolutionary approach, and one that shows no signs of going away.  We’re tired of overblown, high-pressure sales tactics, and we crave a real connection with the companies we choose to do business with.  Make sure you take the time to share your unique vision, journey, and mission with your customers.


10 Trends for Small Business In 2015

1-2 2015 trends small

This New Year will be an important one for every small business as powerful trends shape the direction of the economy. Here are the shifts that companies can expect in 2015:

  1. Less employees, more freelancers. The nature of work has profoundly changed. Small businesses now are easily able to match new revenue to needs in increased resources. This means less permanent employees and more part time resources. This is a beneficial trend that enables the small business owner to make their workforce a variable expense as their sales goes up and down.
  2. Less office employees, more remote resources. While it can be comforting for small business owners to look out from their office and see their team, this version of the company is a thing of the past. Instead, all managers need to get comfortable with leading and building a team culture with remote resources that they do not see every day.
  3. Less email, more in person meetings (or at least video chat). People have opted for email instead of phone calls. But the trend this year will be to have more in person meetings with employees, vendors and customers as everyone wants to make true connections that build lasting relationships.
  4. Less apps, more dashboards. Apple and Android apps have become ubiquitous. According to a recent Intermedia study, 14.3 is the average number of apps per small business and it’s hurting employee productivity. Companies will begin to use more dashboards to integrate these apps to track the key metrics of their business. These include tools like iDashboard.
  5. Less “Bring Your Own Device” (BYOD), more company issued phones. In recent years, small businesses have saved money by having employees conveniently use their own smart phone device for business. This has resulted in many security issues. The trend is for companies to spend the extra money to issue business only devices. They are then able to load only approved applications and keep tight security on those smartphones.
  6. Less data, more analysis. Small business owners are flooded with disparate data that they don’t understand. The trend is away from just data to more analysis of what it all means. Key tools include Power BI from Microsoft, Qlik and Tableau. These applications can integrate much of the company information into something that can be used by management.
  7. Less features, more relationships. With the spread of information almost instantaneously worldwide, there are less differences in product features. The customer can always choose the lowest price. The focus in 2015 will be to continue to service the customer to build value in a personal long term relationship that ensures loyalty. This includes less mass marketing and more one on one personalization through technology.
  8. Less secrecy, more transparency. With social media instantly communicating anything and with every phone having a camera, nothing in business is a secret any longer. This will force every small business to be much more transparent in dealings with customers, employees and product developments. This will also boost more social responsibility for these companies.
  9. Less organic social posts, more boosted advertising. With the sheer glut of millions of posts every day clogging feeds, small business owners in 2015 will be forced to boost their message through social media paid advertising on all the major platforms in order to be seen by their customers.
  10. Less bank loans, more peer to peer lending. Even though bank loans will continue to grow from the depths of the Great Recession, small businesses will now get more of their capital from sites like Fundera that will help choose the best alternate source.

What trends do you see in your business for 2015?




 
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